Steel prices for hot rolled coil in Europe have started to decline as end users push back from earlier offers. Meanwhile, benchmark iron ore prices in China dropped, due to the country’s zero-Covid policy. One analyst noted that steelmakers in Europe are cutting back their production. “Steel would get a bit of support from production […]
Tag: China
Let’s Not Forget China
Russia’s invasion of Ukraine has sent shock waves throughout global metals markets. However, it’s important to remember that the most consistent longer-term driver of metal prices is Chinese demand. That’s why it’s surprising to see how little attention has been paid to the world’s largest consumer and producer of metals in recent months. It’s understandable […]
Metal inventory levels dwindle and that could hit metal prices
While inventory levels serve as an interesting measure for fundamental analysis, that measure remains irrelevant for the short term. But when inventory levels change dramatically and over a longer time frame, they can have both an impact on price and also reflect more profound changes within the market. Ultimately, if not immediately, those factors could […]
Ban on Australian coal imports has minimal impact on China steel prices
China and Australia appear to have finally moved away from each other. The relationship turned frosty after China imposed an “unofficial ban” on Australian coal imports back in November, 2019. At the time, many speculated that China would suffer more. But steel prices have held steadier as well. The dispute started between sometime in 2019 […]
China’s land and expand plan to source critical metals and materials globally
In 1953, China spelled out its 1st “Five-Year Plan”. The strategy involved maximizing the nation’s control over exploration, production, and exports of natural resources. Based upon all available indicators, the country seems to have succeeded in “extending” that plan around the globe. News out of China earlier this week confirmed this fact. Ecuadorean President Guillermo […]
Bases metals prices with short term volatility followed by medium term falls
Many metals consumers normally buy if not spot then on a three-to-six-month time horizon. Still others book up to a year out. Those that fix for longer periods often publish annual sales price lists. These companies need to fix input costs to protect margins. However, that too comes at a cost. Of course there is […]
China introduces plan to reduce heavy metal emissions by 5% by 2025
Chinese authorities recently presented a draft plan to reduce heavy metal emissions by 5% by 2025. As noted previously here, the move comes after Beijing moved to stabilize surging coal prices. The government moved to increase both coal imports and domestic output. The Dalian coking coal price surged to $694 per metric ton in late […]
China raises rare earth production quotas to record levels as prices surge
China has previously been cast in a sinister role with respect to restricting the production and export of critical rare earth metals, usually salts, used to produce a host of products. Those products include magnets for consumers electronics and electric cars, defense equipment and advanced ceramics. But while the country deliberately created a near monopoly […]
Energy crisis in China hits more than just metals output
Much is being made of Beijing’s efforts to meet its environmental emissions targets — the country states it will hit peak emissions before 2030 and carbon neutrality by 2060 — and its restricted steel and aluminium production. But a recent Reuters post by John Kemp suggests output is being impacted more by a widening electricity […]
China to ramp up coal production to meet demand
While the rest of the world is trying to com to grips with the European Union’s proposed carbon border adjustment mechanism (CBAM) – which calls for the levying of charges on non-E.U. products in relation to their embedded carbon footprint — China, on the other hand, is currently grappling with a slightly different energy-related issue. […]
